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"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Wednesday, October 19, 2011

Is a Greek default inevitable?

Is a Greek default inevitable?
CNN International
If banks are forced to take this hit, it could have global economic consequences similar to those seen in the financial crisis that followed the collapse of Lehman Brothers in 2008. Investors would also begin looking at which other countries are facing ...

Home loan defaults jump by 26 percent in California
San Jose Mercury News
AP SAN DIEGO -- Banks sent nearly 26 percent more default notices to California homeowners in the third quarter compared with the previous three months, stepping up actions against those with delinquent loans in what may herald a new wave of ...

Lessons From the Financial Crisis
New York Times (blog)
By BINYAMIN APPLEBAUM The Federal Reserve chairman, Ben S. Bernanke, said Tuesday that the great lesson was the need to juggle two jobs: the traditional work of managing the pace of inflation and the forgotten job of maintaining financial stability. ...

CBA Beating Goldman Sachs in Default-Swaps: Australia Credit
BusinessWeek
The average cost of credit-default swaps to speculate on or insure against losses on Commonwealth Bank of Australia bonds tumbled 44 basis points this month to 176 on Oct. 17, while contracts on Goldman Sachs Group Inc. rose 39 to 369, CMA prices show. ...

S&P/Experian: September Consumer Defaults Up First Time In Year
Wall Street Journal
Customer defaults through September rose from the prior month in all loan categories except one, as the month brought the most default rate increases in about a year or more, according to a monthly survey from Standard & Poor's Indices and Experian. ...

Home Short Sales Rise in 'Dramatic Shift,' May Boost Prices
BusinessWeek
By Kathleen M. Howley Oct. 18 (Bloomberg) -- US home prices may get a boost from an unlikely source: a pickup in sales of properties in default before they reach the stage where they are repossessed by the bank and sold. There has been a “dramatic ...

Fitch: 2011 US High Yield Default Rate Remains Low, Replay of 2010
MarketWatch (press release)
NEW YORK, Oct 18, 2011 (BUSINESS WIRE) -- The US high yield default rate in 2011 is tracking very close to 2010's low level, according to a new report by Fitch Ratings. Fitch expects the defaultrate will end the year in a range of 1%-1.5%, ...

Possibility of Greece default is 89 to 97%, Milken report says
Los Angeles Times
Greece is almost certainly going to default on its debt -- and that's what some economists at the Milken Institute recommend. The economists, in a report titled "Greece's 'Unpleasant Arithmetic,'" say that the probability of Greece defaulting on its ...

Governor Corbett weighs in on Harrisburg financial crisis
CBS 21
As the decision on whether Harrisburg can legally file bankruptcy sits in court and the state moves one step closer to taking control of the city's finances, the Governor weighs in on the mess. Governor Corbett said it's unfortunate to see that it's ...

Bank Bond Risk Rises in Europe Amid Crisis Resolution Concern
BusinessWeek
By Abigail Moses Oct. 18 (Bloomberg) -- The cost of insuring against default on European bank bonds rose on concern politicians are struggling to agree to a solution to the region's debt crisis as the economy slows. The Markit iTraxx Financial Index of ...

Reports suggest sovereign debt default imminent
Euromoney Magazine
Two reports released on Tuesday hint that a sovereign debt default is highly plausible, and that the defaulter would also likely exit the euro. In a report by Mitsubishi UFJ Securities International, the investment bank states that the contagion for ...

Bernanke on Monetary Policy
Fox Business
The financial crisis of 2008 and 2009, together with the associated deep recession, was a historic event--historic in the sense that its severity and economic consequences were enormous, but also in the sense that, as the papers at this conference ...

Emerging countries to suffer from eurozone contagion
PublicServiceEurope.com
by Dean Carroll Emerging European nations are likely to experience a slowdown in economic growth next year as the contagion from the eurozone crisis spreads, it has been claimed. In the report "Regional Economic Prospects" released today, the European ...

5 Heights council hopefuls talk financial crisis
Dearborn Press and Guide
By Ben Baird DEARBORN HEIGHTS — The five candidates for City Council each have something to say about the city's current financial crisis and about the millage proposal that will be on ballots alongside the council positions. ...

HEC likely to face another financial crisis
International News Network
Islamabad: Higher Education Commission (HEC) is likely to face another financial crisis as planning commission has provided only 20% of the budget and organization has no sufficient funds for payment of salaries to the universities after next two ...

Dubai's Drydocks hit with $45.4m lawsuit over loan default
ArabianBusiness.com
Dubai was hit hard by the global financial crisis, which sent property prices slumping by more than 50 percent and forced several state-owned entities to restructure their debts. Drydocks World signed a new $200m credit facility in January. ...

Banks face greatest risk if EU nations default
Business Daily Africa
So if sovereigns default, the banks that hold securities issued by these governments also suffer. And if the banks fail, a financial crisis that will affect the depositors, the investors and every other facet of the economy will occur. ...

EU to ban 'naked' credit default swaps
Ninemsn
The European Union has agreed to ban "naked" credit default swaps, a controversial financial instrument that traders use to bet on a country's failure to pay off debt. EU states and the European parliament reached a deal after long negotiations to ...

Could the Current Financial Crisis Damage the EU's Gas Industry?
Alaska Dispatch
Jean-Francois Cirelli, President of the world's largest utility company, GDF SUEZ, will deliver a keynote speech at a major international energy summit in Paris this November that examines the future for European gas in the wake of uncertain financial ...

In Uncertain Times, Municipal Bonds Call for Caution
New York Times
While default risk rises for municipal bonds during recessions, defaults of the highest-rated issues are rare. By JOHN F. WASIK When the prominent banking analyst Meredith Whitney predicted late last year that “hundreds of billions of dollars” of ...